Argo Blockchain PLC Announces 2024 Annual Results and Restoration of Listing
Rhea-AI Summary
Positive
- Full repayment of Galaxy debt during 2024
- Reduced net debt by $24.1 million to $31.0 million
- Reduced non-mining operating costs by 34% compared to 2023
- New hosting agreements secured with Merkle Standard LLC for over 13,000 miners
Negative
- Net loss increased to $55.1 million from $34.6 million in 2023
- Revenue declined 7% to $47.1 million
- Mining margin decreased to 33% from 43% in 2023
- Bitcoin production dropped to 755 from 1,760 in previous year
- Cash position declined significantly from $8.6M to $2.4M in Q1 2025
- Material uncertainties about going concern noted by auditors
- $31.5 million asset impairment charge
News Market Reaction – ARBK
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LONDON, ENGLAND / ACCESS Newswire / May 9, 2025 / Argo Blockchain plc (LSE:ARB)(NASDAQ:ARBK), is pleased to announce its audited results for the year ended 31 December 2024. All figures have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") and are stated in U.S. dollars. The directors have adopted the going concern basis of accounting in the preparation of the annual financial statements; more detail can be found in the accounting policies. However, the directors note that the debt service requirements, lower operating margins, and the volatile economic and industry environment, indicate the existence of material uncertainties that may cast significant doubt regarding the applicability of the going concern assumption, and the auditors have made reference to this in their audit report and additional information is included in Note 3 to the fianncial statements.
Highlights
Total number of Bitcoin mined during 2024 was 755, or 2.1 Bitcoin per day (2023: 1,760, or 4.8 Bitcoin per day).
Revenues of
$47.1 million (2023:$50.6 million ), a decrease of7% from 2023, driven primarily by the reduced hashprice resulting from the Bitcoin halving.Mining margin of
33% , down from43% in 2023. Similar to revenue, this decrease was largely attributable to the reduced hashprice resulting from the Bitcoin halving in April 2024.Reduced non-mining operating costs by
34% in 2024 compared to the prior year.Adjusted EBITDA of
$5.7 million , compared to$7.7 million in 2023.Net loss of
$55.1 million , compared to a net loss of$34.6 million in 2023. The net loss was primarily the result of a$31.5 million asset impairment,$15.0 million of amortization and$6.8 million of interest expense.Reduced interest expense by
41% , as a result of fully repaying the Galaxy debt during 2024.Net debt (cash less debt obligations) was reduced by
$24.1 million from$55.1 million at 31 December 2023 to$31.0 million at 31 December 2024.
As at 31 December 2024, the Company had
Post-period highlights
The Group signed hosting agreements with Merkle Standard LLC to host 9,315 miners at Merkle's Memphis, Tennessee location and up to 4,000 machines at its Washington State location. Approximately 1,232 units were sent to the Group's Baie Comeau facility. A further approximately 8,000 units (6,000 were sold after 31 March 2025) were sold for cash proceeds of approximately
During the month of April we continued the deployment of our Helios miners to our hosting sites and mined 13 Bitcoin. The deployment of these units will be completed by the end of May 2025.
Commenting on the results, Justin Nolan, Argo Blockchain CEO, said, "The repayment of the Galaxy debt during 2024 was a major achievement for the team, as was the successful refurbishment and rehosting of the Helios fleet. We continue to work on strengthening the balance sheet and pursuing strategic options."
The tables below reconcile Bitcoin and Bitcoin Equivalent Mining Margin to gross margin, the most directly comparable IFRS measure, and Adjusted EBITDA to net income/(loss), the most directly comparable IFRS measure:
Year ended | Year ended | |
31-Dec | 31-Dec | |
2024 | 2023 | |
$'000 | $'000 | |
Gross profit | 1,457 | 3,101 |
Depreciation of mining equipment | 14,171 | 18,656 |
Mining profit | 15,628 | 21,757 |
Bitcoin and Bitcoin Equivalent Mining Margin |
The following table shows a reconciliation of Adjusted EBITDA to net income/(loss), the most directly comparable IFRS measure, for the years ended 31 December 2024 and 31 December 2023.
Year ended | Year ended | |
31-Dec | 31-Dec | |
2024 | 2023 | |
$'000 | $'000 | |
Net loss | (55,102) | (34,637) |
Interest expense | 6,810 | 11,556 |
Depreciation / amortisation | 15,024 | 20,129 |
Income tax expense | 340 | - |
EBITDA | (32,928) | (2,952) |
Impairment of assets | 31,498 | 855 |
Impairment of intangible assets | 468 | 1,082 |
Loss/(gain) on sale of subsidiary and investments | 842 | (36) |
Loss on sale of fixed assets | 429 | - |
Loss/(gain) on disposal of intangible assets | 98 | (1,166) |
Foreign exchange | (458) | (1,914) |
Restructuring and transaction-related fees | 1,976 | 4,969 |
Share based payment charge | 3,759 | 3,892 |
Equity accounted loss from associate | 0 | 716 |
Write off of investment | 0 | 2,236 |
Adjusted EBITDA | 5,684 | 7,682 |
Restoration of Listing
The Company would like to advise that, further to this announcement, it has now requested that the suspension of the Company's listing be lifted by the Financial Conduct Authority as soon as possible to enable trading of the Company's shares to resume.
This announcement contains inside information.
For further information please contact:
Argo Blockchain | |
Investor Relations | |
Tennyson Securities | |
Corporate Broker Peter Krens | +44 207 186 9030 |
Fortified Securities | |
Joint Broker Guy Wheatley, CFA | +44 7493 989014 |
Tancredi Intelligent Communication UK & Europe Media Relations |
About Argo:
Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With a mining facility in Quebec and offices in the US, Canada, and the UK, Argo's global, sustainable operations are predominantly powered by renewable energy. In 2021, Argo became the first climate positive cryptocurrency mining company, and a signatory to the Crypto Climate Accord. For more information, visitwww.argoblockchain.com.
Forward looking statements
This announcement contains "forward-looking statements," which can be identified by words like "may," "will," "likely," "should," "expect," "anticipate," "future," "plan," "believe," "intend," "goal," "seek," "estimate," "project," "continue" and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. The information in this announcement about future plans and objectives of the Company are forward-looking statements. The Company's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, market and other conditions, the principal risks and uncertainties listed in the risk factors set forth in our Annual Report and Financial Statements and Form 20-F for the year ended 31 December 2024.
Please refer to the attached PDF document to view the full announcement:
http://www.rns-pdf.londonstockexchange.com/rns/9888H_1-2025-5-9.pdf
SOURCE: Argo Blockchain PLC
View the original press release on ACCESS Newswire